CNBC's Ron Insana: 'Pre-Emptive Strike' by Fed Wouldn't Help Economy

Friday, 22 Aug 2014 01:30 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
While some Federal Reserve officials have called for the central bank to raise interest rates sooner than most market participants expect, CNBC contributor Ron Insana says that would be a bad idea.

"Commodity prices have fallen sharply since the last Fed meeting, . . . housing is still struggling . . . and the global economy looks weaker than it did a month and a half ago," he writes on CNBC.com.

The labor market shows slack too, Insana says. Wages rose only 2 percent in the 12 months through July, and the labor participation rate hovers near a 36-year low.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

"It does not seem to me that, while the economy is much improved, a pre-emptive strike on phantom inflation would do the economy much good," Insana writes.

"I will make the bet that Fed rate hikes are still not coming until the second half of 2015." The Fed has kept its federal funds rate target at a record low of zero to 0.25 percent since December 2008.

Elsewhere, Federal Reserve Bank of St. Louis President James Bullard said the U.S. central bank may begin tightening monetary policy earlier than officials previously expected, while Atlanta Fed President Dennis Lockhart urged more patience.

“The evidence is leading toward an earlier increase than would have been in the works earlier this year,” Bullard told Bloomberg Radio. “Labor markets have improved quite a bit relative to what the committee was thinking.”

Lockhart, who spoke in a separate Bloomberg Radio interview Thursday, still warned of the risk of “moving prematurely and snuffing out some progress.”

Meanwhile, financial industry professionals give the Federal Reserve an approval rating of just 49 percent in a survey by ConvergEx Group brokerage. A total of 32 percent of the 219 people polled by ConvergEx Aug. 12-14 disapprove of the Fed's performance.

A total of 59 percent of respondents say the Fed is behind the curve in raising interest rates, while 32 percent say the Fed is getting it right, and 9 percent say rates should be lower.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

Related Stories:








© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Census: Household Income Continues to Stagnate Under Obama

Tuesday, 16 Sep 2014 11:11 AM

The median U.S. household income remained nearly flat at $51,939 in 2013 compared with the previous year, according to f . . .

Business Roundtable CEOs See 'Underperforming' Economy

Tuesday, 16 Sep 2014 13:38 PM

Corporate CEOs apparently aren't too impressed with the economy. . . .

Stocks Rally as Energy Shares Gain While China Funds Banks

Tuesday, 16 Sep 2014 16:29 PM

U.S. stocks advanced, erasing early losses, as rising oil prices spurred a rally in energy shares and China's central ba . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved